brand-footprint-report_6
brand-footprint-report_6
brand-footprint-report_6
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Moving North in Food<br />
WHAT WILL SHOPPERS WANT NEXT<br />
Innovation in food is shaped by changing, often<br />
local, consumer requirements. In response,<br />
food <strong>brand</strong>s are seeking more engagement<br />
with consumers – particularly through social<br />
media – to put themselves at the forefront of<br />
understanding what they will want next and<br />
how they can respond.<br />
GLOBAL BRAND COMPASS FOOD BRANDS<br />
LOW PENETRATION &<br />
HIGH FREQUENCY<br />
W<br />
Ajinomoto<br />
16<br />
14<br />
HIGH PENETRATION &<br />
HIGH FREQUENCY<br />
N<br />
Four ways to win<br />
12<br />
CONVENIENCE AND NUTRITION PROVE<br />
A WINNING COMBINATION<br />
The 2014 Brand Footprint food ranking reveals<br />
two key trends: consumers say they want<br />
health, but they often choose convenience.<br />
Health is an important consideration for<br />
consumers worldwide when making food<br />
choices. Rising obesity, higher levels of<br />
education and food contamination scares are<br />
all motivating factors for the focus on health.<br />
Alongside this is a demand for food <strong>brand</strong>s<br />
to offer convenience. The needs of time-poor<br />
consumers, changing social habits and onthe-go<br />
eating are creating the desire for food<br />
options which are easy to prepare and to eat.<br />
Manufacturers have responded with healthy<br />
options and ‘better for you’ variants that<br />
replace high-sugar, sodium and fat products,<br />
and convenient solutions which meet new<br />
consumption occasions or consumer needs<br />
such as breakfast biscuits which offer slow<br />
release energy.<br />
In Asia, health benefits are considered as<br />
important as safety within food. Both attributes<br />
are especially valued by women: 72% of urban<br />
Vietnamese housewives want products with<br />
additional ‘active’ ingredients such as vitamins,<br />
ginseng and calcium. Convenience is also a<br />
growing priority with more than half of rural<br />
Vietnamese housewives now preferring food<br />
that doesn’t require much preparation. One<br />
global <strong>brand</strong> responding to these needs is<br />
Maggi which positions itself as 'the friend<br />
of consumers' with a strategy to make its<br />
products indispensable in the kitchens of<br />
every Vietnamese family.<br />
In Spain, where the penetration of ready-toeat<br />
food peaked in 2011, home-made dishes<br />
returned to popularity with households using<br />
healthier methods such as boiling, stewing<br />
and grilling. This trend has boosted the growth<br />
of <strong>brand</strong>s including Knorr which created new<br />
convenient home-cooking solutions.<br />
Despite their concern for healthy eating<br />
consumers in some countries, such as the UK<br />
and US, have increased the average sugar and<br />
saturated fat content in the food they buy. This<br />
is partly influenced by the trend for 'natural'<br />
products – butter is higher in saturated fat<br />
than ‘light’ margarine – but also due to a move<br />
towards more convenient processed foods.<br />
Did you know<br />
The portions eaten by men in<br />
the UK are on average 20%<br />
larger than those consumed<br />
by women. Women choose<br />
'healthy' <strong>brand</strong>s 25% more<br />
often than men.<br />
• Play an active role in the fight against<br />
obesity. Danone’s new Light and Fit range<br />
of fat-free yogurts in the US and Walker’s<br />
air-popped Pops snack in the UK meet<br />
consumers’ health needs as well as<br />
enhancing the <strong>brand</strong>s’ position as trusted and<br />
responsible. Bread <strong>brand</strong>s including Bimbo<br />
and Brazil’s Panco are also responding,<br />
launching more wholegrain, light and<br />
seeded variants. Understanding that people<br />
don’t want to skimp on taste, treat <strong>brand</strong>s<br />
such as Cornetto and Oreo have launched<br />
mini options that allow shoppers to indulge<br />
themselves with a smaller portion.<br />
• Take a different approach to ‘healthy’ in<br />
different countries. In Asia the focus is on<br />
‘naturalness’ and supplementing products<br />
with herbal-based benefits. Knorr and<br />
Maggi’s success in Asia is led by a strong<br />
emphasis on natural ingredients in the taste<br />
enhancer segment. Latin Americans are<br />
more interested in weight loss. Danone’s<br />
Ser <strong>brand</strong> has outdone competitors in Latin<br />
America with its tasty low calorie products.<br />
• Co-create products and experiences with<br />
consumers. This solidifies a <strong>brand</strong>’s role in<br />
consumers’ lives and enables it to tap into<br />
genuine experiences and needs, then produce<br />
products based on their specifications. It also<br />
generates engagement and excitement by<br />
involving consumers in the development of<br />
something new and unique.<br />
• Use co-<strong>brand</strong>ing to extend reach. Combining<br />
the best elements of two <strong>brand</strong>s – as Cadbury<br />
did with Ritz crackers and French biscuit<br />
LU to create Dairy Milk Ritz and Dairy Milk<br />
LU – can lead to new products that appeal to<br />
different consumers and markets. Mondelez is<br />
a pioneer of co-<strong>brand</strong>ing. Milka was partnered<br />
with Oreo in the UK and Philadelphia spread<br />
in France. Retailer partnerships can produce<br />
exciting new offerings, for instance the Oreo<br />
McFlurry in McDonalds.<br />
THE GAME CHANGER: HEALTHY BISCUITS AND<br />
BREAKFAST BISCUITS<br />
As the second most purchased category within the<br />
food market, biscuits have had an exciting year.<br />
Penetration % 2013<br />
S<br />
10<br />
8<br />
Kraft<br />
Bimbo<br />
Maggi<br />
Yakult Activia<br />
0 Kinder 10 6 20<br />
Yoplait<br />
Barilla<br />
Lay’s 30 Knorr<br />
40<br />
Doritos<br />
Hershey’s Quaker<br />
Heinz<br />
McCormick<br />
Danone Cheetos<br />
LOW PENETRATION & LOW<br />
FREQUENCY<br />
The category has innovated with new pack sizes,<br />
flavours and variants, creating new consumption<br />
occasions. One of the most revolutionary trends<br />
has been the growth of ‘healthy biscuits’, chosen<br />
for their low salt, fat and sugar content with<br />
added fibre and vitamins.<br />
BELVITA: REDEFINING BREAKFAST IN THE UK<br />
Belvita was first launched in France more than 10<br />
years ago. The ‘breakfast biscuit’ was created to<br />
address a gap in the French market for ready-toeat<br />
breakfasts that could be consumed on the go.<br />
Following its success in France, Belvita brought<br />
its products to the UK – which is a nation keen<br />
on biscuits, with 70% of the population eating the<br />
product in a typical week.<br />
Mondelez, the owner of Belvita, combined this<br />
local preference for biscuits with the need of<br />
UK consumers for a convenient and nutritious<br />
breakfast food. Mondelez spent $12.7m on<br />
marketing in the UK emphasising the product’s<br />
benefits: it’s easy to eat on the move, both tasty<br />
and satisfying, with energy that is released slowly.<br />
Following the success of the sub-segment in the<br />
UK, Belvita has exported the idea of eating healthy<br />
biscuits for breakfast to three continents. Belvita<br />
grew its Consumer Reach Points by 13% in the<br />
last year and jumped two positions in the global<br />
ranking. Growth was driven by Colombia and<br />
Saudi Arabia as well as the UK, where penetration<br />
4<br />
2<br />
2<br />
Oreo<br />
Frequency 2013<br />
Nestlé<br />
E<br />
HIGH PENETRATION &<br />
LOW FREQUENCY<br />
increased 5%. It has been less successful in<br />
Portugal and France where it has been challenged<br />
by local competitors such as Gullón and Nacional.<br />
So far the <strong>brand</strong> has protected its market-leading<br />
position in the UK with aggressive promotions,<br />
however the breakfast biscuit sub-segment is<br />
becoming more crowded with competitors such<br />
as Hovis, Quaker, Weetabix and McVitie’s all with<br />
their own breakfast biscuit variants. How long will<br />
Belvita’s lead be sustained<br />
Did you know<br />
Every household in Chile<br />
buys a tomato sauce at<br />
least once a year.<br />
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